Annual Report and Appendix 4E
Sydney, Aug 29, 2016 AEST (ABN Newswire) - The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'group') consisting of Topbetta Holdings Ltd (
ASX:TBH) (referred to hereafter as the 'company', 'TopBetta' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2016.
Principal activities
The group's principal activities during the financial year were digital fantasy wagering, wagering and content services.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the group after providing for income tax amounted to $4,537,525 (30 June 2015: $1,282,461).
The group operates various online platforms, which together offer a comprehensive wagering business, and combines fantasy wagering with traditional wagering. This model is supported by extensive content provided to its customers. Further details on the group's operations during the financial year is set out in the Investor Presentation lodged with Australian Securities Exchange ('ASX') on 28 July 2016.
Our business strategy
Innovation is a key differentiator for the group and with the advantage of proprietary technology, it has been at the forefront of innovation throughout the enormous online wagering sector in Australia.
The industry itself is growing at 20% each year, according to UBS Evidence Lab, Australian Gaming, 18 July 2016.
The group's strategy is to grow even faster than our industry by combining our tournaments and wagering with content services, and by delivering these services through our adaptive platform. Our content and tournament services are unique and provide stimulus for customers to register and engage on the group's websites; wagering leverages this engagement further. The adaptive platform has the unique ability to integrate and customise its offerings directly into partners' platforms, such as affiliate sites, sporting organisations, media companies and more. This gives the group a wide range of customer acquisitions channels and engagement opportunities that underpin our rapid growth to date.
Financial year achievements
Revenue growth
The group's revenues increased during the financial year ended 30 June 2016, and has more than doubled when compared to the financial year ended 30 June 2015. This growth was achieved despite senior management simultaneously progressing and being intensely involved with the process leading up to the initial public offering ('IPO') during the first half of the year.
Launch/progress of fantasy tournaments
TopBetta tournaments were released during October with a number of features and user engagement processes added. Features included multi Buy-In to tournaments, cross-event tournaments along with a number of smaller additions. The new structure has seen a significant tournament growth in the last quarter of 2016.
In the period January-June 2016, additional types of tournaments were added, including "skins" tournaments that run over a number of weeks, and combine prizes at each stage with a grand-prize at the end of the tournament.
Software/platform development
The group's proprietary software allows effective customisation that adapts to the user's preferences. During the financial year ended 30 June 2016, the group implemented various improvements to its software platform, including:
- Improving user engagement with a new front-end to the TopBetta system;
- Adding/improving the sports betting functionality;
- Implementing improvements to tournaments as described above;
- Implemented website indexation and introduced automated online marketing and chat functionality;
- Improving data-communication capabilities with data suppliers/partners through a new data-interface ('API');
- Improving scalability and controls by improving the administrative functions of the platform; and
- Improving controls with upgrades to the group's risk management systems, especially with respect to sports betting functionality.
Employment and operations
In the first half of the financial year, the group engaged several new members to provide services to the 12Follow content team, product development team, and risk management team.
During the financial year, the group added a Chief Operating Officer, a Head of Product, a Client Services and Tele-sales team, as well as additional new members of our risk management, product development and software-platform/IT teams.
Board of directors
The group secured a committed and highly skilled Board of directors with experience in senior roles in some of Australia's leading companies.
Significant changes in the state of affairs
Change of name and conversion to public company
On 6 October 2015, the company OM Group Holdings Pty Ltd converted from a private company to a public company and on 16 November 2015, changed its name to TopBetta Holdings Limited.
Successful initial public offering ('IPO')
On 11 December 2015, the company was admitted to the Official List of the Australian Securities Exchange ('ASX') with the ASX code TBH. The company also raised $6,000,000 in an IPO of its shares.
On 29 March 2016, the company acquired 12.5% of the equity of Modern Wagering Systems Pty. Ltd. for $250,000, of which $100,000 was paid and $150,000 remained unpaid at 30 June 2016. Modern Wagering Systems creates white-label solutions for pooling event and wagering information between wagering operators.
The group's investment in Modern Wagering Systems will to:
- Integrate the unique "TopBetta Tournament" products and new pooled betting products with MWS's existing sports and racing systems, allowing third-party operators to easily access the network of TopBetta Tournaments and create mass distribution,
- Offer fully-integrated white label solutions for potential wagering operators in Australia and globally, and
- Launch a newly-developed pooled-betting product on global sporting contests, including football, golf, racing, car racing, and sports, amongst others.
There were no other significant changes in the state of affairs of the group during the financial year.
To view the full Annual Report, please visit:
http://abnnewswire.net/lnk/8B71J5M5
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
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